5 Types of DAO Tools You Should Know About

DAOs, Decentralized Autonomous Organizations are community-led organisations with no central authority. These organizations function in a similar way to grassroots movements where people have a common goal and come together. The types of DAOs can vary greatly in terms of their goals. There are DAOs for media like Bankless DAO and collector DAOs such as FlamingoDAO and DAOs for protocol like MakerDAO to name a few.

However, no matter what their type, DAOs must perform certain operations in order to manage their organizations. They use a variety of software and applications to accomplish this. This is called DAO tooling.

The majority of operations are very common in DAOs. This article will give you a look at typical DAO operations as well as the DAO tooling landscape.

The most popular types of DAO tools

#1 Governance & voting

DAOs, as their names indicate, must be autonomous and decentralized. Decision-making is done by embedding rules in smart contracts and all proposals must be voted on by the community.

DAOs have the option of using either on-chain or offline voting processes. However, some prefer a combination of both. Signalling votes, also known as off-chain votes, indicate the will of voters without actually executing any action. Snapshot is the most used off-chain voting tool. There are many options for token-based voting on the platform, including NFTs.

Sybil and Tally are two other popular on-chain governance tools. Tally allows DAOs create proposals, vote or delegate voting rights. Sybil can be used to find accounts that are eligible for delegating voting rights.

#2 Treasury Management

DAOs require transparent processes to manage their assets. All assets of a DAO are typically stored in one crypto wallet, known as the Treasury. To prevent fraud, DAOs require multiple signatures to approve transactions. This is called a multisig transaction. Multiple tools allow DAOs to enable multisig, including Safe and Multis.

Juicebox protocol is another popular DAO asset management tool. This is a programmable Treasury DAO that can be used to create token minting or crowdfunding.

#3 Community management

Telegram, Discord, and Twitter are the best tools for connecting with members of your community. However, DAOs can also use other tools to maximize different aspects of your community management.

They can also create and manage communities with gm.xyz, and onboard Catapult users. Fractal’s know-your-customer process allows DAOs the ability to verify that their members are not bots. It also ensures fair participation in voting systems and airdrops.

#4 Compensation Distribution

Some DAO tools explicitly reward members for their contributions. Coordinape is the most popular of these tools. It helps DAOs to fairly distribute compensation, allow community members to reward each other and determine internal salaries.

Superfluid is another popular tool for compensation. It is used by DAOs to automate recurring and real time payments. Sablier is another protocol for streaming payments, while Utopia for payroll management is for DAOs and Roll for bulk token distribution.

DAOs may also offer bounties to members. You can announce bounties on Dework, Layer3, Kleoverse and Gitcoin.

#5 Access control

Guild.xyz can be used by DAOs that have token-gated communities to create community roles based upon token holdings, manage whitelists and distribute POAPs. It also allows members without tokens to create guess passes. Collab.land allows the verification of assets on Ethereum. DAOs integrate it in their official Discord or Telegram channels to verify ownership, and assign access rights. Another tool for granting access rights based upon wallet balances is the Grape protocol. It’s intended for Solana.

Bottom line: Other types of DAO tooling

These tools are the main means of running most DAO operations. However, many others can be used to fulfill other functions. Developer tools such as Alchemy, Radicle, and tax management tools such as Accointing are some of the most essential parts of DAO tooling.

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